Full Press Release Details
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Marc Panoff, CFO Garth Russell / Todd Fromer
Nephros, Inc. KCSA Worldwide
Tel: 212-781-5113 212-896-1250 / 212-896-1215
CORRECTING and REPLACING Nephros Reports First Quarter 2005 Financial Results
NEW YORK--(BUSINESS WIRE)--May 16, 2005--In BW5725 issued May 16, 2005: Second
graph, second sentence of release should read: The Company's net loss was
$392,887 for the first quarter of 2005 versus a net loss of $2,017,732 in the
comparable period last year (sted: The Company's net loss was $448,892 for the
first quarter of 2005 versus a net loss of $2,017,732 in the comparable period
The corrected release reads:
NEPHROS REPORTS FIRST QUARTER 2005 FINANCIAL RESULTS
Nephros, Inc. (AMEX: NEP) announced today financial results for the first
quarter ended March 31, 2005.
For the quarter ended March 31, 2005, Nephros reported net revenue of $1,901,665
compared with no revenue in 2004. The Company's net loss was $392,887 for the
first quarter of 2005 versus a net loss of $2,017,732 in the comparable period
last year. Nephros reported a net loss attributable to common stockholders in
the first quarter of 2005 of $392,887, or $0.03 loss per basic and diluted
share, compared to a loss of $4,089,232, or $2.57 loss per basic and diluted
share, in the year-earlier period.
The net loss applicable to common shareholders for the three months ended March
31, 2004 includes losses of $2,071,500 attributed to preferred dividends and
accretion of beneficial conversion features and issuance costs in connection
with the issuance of convertible preferred stock. There were no such losses for
the three months ended March 31, 2005 because all of the Company's shares of
preferred stock were converted into common stock upon the completion of the
Company's initial public offering in September 2004.
Revenue recognized from product sales was $151,665 in the first quarter of 2005.
Product revenue is recognized once a customer's right of return has expired.
First quarter revenue also included non-recurring revenue of $1.75 million
resulting from the Company's licensing agreement with Asahi Kasei Medical Co.,
Ltd., announced March 2, 2005.
As of March 31, 2005, cash, cash equivalents and short-term investments were
$10,310,473, compared to $9,715,121 as of December 31, 2004.
"I am pleased with our strong start in 2005 and the positive momentum we have
established. We continue to increase awareness in the European market and build
upon our initial sales. In March 2005, we filed our 510(k) application for our
OLpur HD190 with the FDA. We believe this will play a key role as we move
forward with our OLpur MD190 and OLpur H2H FDA submissions," stated Norman
Barta, chief executive officer of Nephros. "In the first quarter, we announced a
significant licensing agreement with Asahi Kasei Medical Co., Ltd. Under the
agreement, Asahi will be able to develop and market its own products in Japan
based on our mid dilution hemodiafiltration technology. Forging a
relationship with this leader in the dialysis market, and the largest filter
provider in Japan, is a key milestone for Nephros and our mid-dilution
hemodiafiltration therapy. We believe our relationship with Asahi will
complement our sales and marketing efforts for the OLpur MD190 in Europe and
help to build greater brand recognition worldwide."
Nephros, Inc., headquartered in New York, is a medical device company developing
and marketing products designed to improve the quality of life for the End Stage
Renal Disease (ESRD) patient, while addressing the critical financial and
clinical needs of the care provider. ESRD is a disease state characterized by
the irreversible loss of kidney function. Nephros believes that its products are
designed to remove a range of harmful substances more effectively, and more
cost-effectively, than existing treatment methods; particularly with respect to
substances known collectively as "middle molecules," due to their molecular
weight, that have been found to contribute to such conditions as dialysis
related amyloidosis, carpal tunnel syndrome, degenerative bone disease and
ultimately, to mortality in the ESRD patient.
Forward Looking Statements
This news release contains certain "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995, as amended.
Such statements may include statements regarding the efficacy and intended use
of Nephros's technologies under development, the timelines for bringing such
products to market and the availability of funding sources for continued
development of such products and other statements that are not historical facts,
including statements which may be preceded by the words "intends," "may,"
"will," "plans," "expects," "anticipates," "projects," "predicts," "estimates,"
"aims," "believes," "hopes," "potential" or similar words. For such statements,
we claim the protection of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements are not guarantees of future performance, are based
on certain assumptions and are subject to various known and unknown risks and
uncertainties, many of which are beyond the control of Nephros. Actual results
may differ materially from the expectations contained in the forward-looking
statements. Factors that may cause such differences include the risks that: (i)
potential products that appeared promising in early research or clinical trials
to Nephros may not demonstrate efficacy or safety in subsequent pre-clinical or
clinical trials; (ii) Nephros may not obtain appropriate or necessary
governmental approvals; (iii) product orders may be cancelled, patients
currently using Nephros's products may cease to do so and patients expected to
begin using Nephros's products may not; (iv) Nephros may not be able to obtain
funding if and when needed; (v) Nephros may encounter unanticipated internal
control deficiencies or weaknesses or ineffective disclosure controls and
procedures; (vi) HDF therapy may not be accepted in the United States and/or
Nephros's technology and products may not be accepted in target markets; (vii)
Nephros may not be able to sell its products at competitive prices or
profitably; and (viii) Nephros may not be able to secure or enforce adequate
legal protection, including patent protection, for its products. More detailed
information about Nephros and the risk factors that may affect the realization
of forward-looking statements is set forth in Nephros's filings with the
Securities and Exchange Commission, including Nephros's Annual Report on Form
10-KSB filed with the SEC for the fiscal year ended December 31, 2004 and its
Quarterly Report on Form 10-QSB filed with the SEC for the fiscal quarter ended
March 31, 2005. Investors and security holders are urged to read those documents
free of charge on the SEC's web site at www.sec.gov. Nephros does not undertake
to publicly update or revise our forward-looking statements as a result of new
information, future events or otherwise.